Subhash Chander Mittal Vs Director General of Income-tax (Punjab and Haryana High Court)
Summary: The Punjab & Haryana High Court considered two connected writ petitions concerning interest liability under the Income-tax Act, 1961 and eligibility under the Direct Tax Vivad Se Vishwas Scheme, 2024. The first petition, CWP-18030-2021, challenged re-determination of interest and rejection of a waiver application under Section 220(2A). The second, CWP-24116-2025, challenged rejection of the petitioner’s request to settle the disputed interest under the 2024 Scheme.
The petitioner was a partner in M/s Roxy Industrial Corporation, Ludhiana, a firm engaged in trading cycle parts. Following dissolution of the firm on 02.04.2004, its assets and liabilities fell to the petitioner’s share. A search and seizure operation under Section 132 of the Income-tax Act, 1961 was conducted on 07.08.1992. An assessment order dated 28.03.1994 assessed additional income of Rs. 2,61,15,066/- and also imposed interest under Section 234B. The firm subsequently approached the Settlement Commission under Section 245D(1), resulting in reduction of additional income to Rs. 2,45,54,225/-. The Settlement Commission’s order was later upheld by the High Court.
Interest under Section 220(2) of Rs. 82,78,452/- and interest under Section 234B of Rs. 24,01,258/- were subsequently imposed. The High Court, while disposing of CWP-7757-2011 on 14.03.2013, quashed the order imposing that interest and directed re-determination. Pursuant to those directions, the Deputy Commissioner of Income Tax (HQ) (Central), Ludhiana, by order dated 12.02.2020, determined interest under Section 234B at Rs. 24,01,258/- and interest under Section 220(2) up to December 2019 at Rs. 1,08,24,744/-. The petitioner’s waiver request under Section 220(2A) was also rejected. The petitioner challenged that order in CWP-18030-2021, which remained pending on the specified date of 22.07.2024.
